Sako begins change negotiations for civilian rifle division in Finland

The Finnish firearms manufacturer Sako is set to begin change negotiations within its civilian rifle division. The company cites an increase in general living costs, which has led to a decline in sales of civilian rifles, including hunting and sports firearms. Additionally, the turnover in retailers’ stocks has slowed, and the factory’s order backlog has significantly decreased for the remainder of 2024.

Juha Alhonoja, CEO of Sako, stated that these measures are essential to safeguard the company’s production capabilities and maintain competitiveness. The negotiations will start on September 23 and involve a total of 160 employees in Riihimäki and Muurame.

The aim of the negotiations is to minimize the number of employees who may be affected by potential personnel measures. Details will be clarified as negotiations progress. Discussions will cover the rationale and implications of proposed measures impacting staff, as well as suggestions and alternative solutions from employee representatives.

Preliminary estimates suggest that these negotiations could lead to employee layoffs lasting up to four weeks. Alhonoja expressed a goal of concluding the discussions by the end of September. According to Sako’s announcement, the outlook for 2025 remains positive, influenced by growth in its governmental operations and a steady forecast for its civilian business.